To ask the Minister for the Cabinet Office, what criteria does the Civil Service Pension Scheme apply in implementing 59(5) Social Security Pensions Act (SSPA) 1975, resulting in a reduction in public service pension.
23 September 2022
The Cabinet Office applies the provisions of the Social Security Pensions Act 1975, including those set out in Section 59(5), to the Civil Service Pension Scheme.
The responsibility for making Directions under the Social Security Pensions Act 1975 about when public service pension schemes should not deduct part or all of a Guaranteed Minimum Pension under section 59(5) of the Social Security Pensions Act 1975 before applying pension increases sits with HM Treasury.
Such provisions for the indexation of Guaranteed Minimum Pensions (GMPs) by public service pension schemes in specified circumstances are set out in Directions made by HM Treasury under section 59A of the Social Security Pensions Act 1975. Taken together with general provisions for indexing public service pensions under section 59 of the Social Security Pensions Act 1975, read with the Pensions (Increase) Act 1971, these provide for the full indexation of GMPs earned as part of a public service pension in circumstances where those GMPs are not increased through the State Pension.
The latest Section 59A direction is available here: Treasury_Direction_30.03.2021_FINAL.pdf (publishing.service.gov.uk)